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A Law That Would Protect People From Student Loan Hell

Many well-intentioned graduates can't afford to pay off their student loans because of the sour economy. They are being sacked with debt and penalties that outweigh their best efforts to keep up.

Unlike other forms of debt, in the case of student loans, basic consumer rights like bankruptcy protection don't apply to those who default. Instead, everyone from recent college graduates to the older underemployed who can't afford to pay is subject to garnished wages and other income in the name of paying for higher education with an increasingly high price tag. Unresolved student loan debt in the United States now surpasses $1 trillion.

That’s where the bill proposed by Rep. Frederica Wilson, D-Fla., the Student Borrowers Bill of Rights Act, H.R. 3892, comes in as a possible solution.


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Risk management and good sense can't be legislated.

Free includes debt-free!


People could wise up and realize that taking out 80k or more in debt for a college degree is insanity. Complete and utterly.

I love my fiance, but she is 80+k in debt from private school and making half that a year. How is that at all smart?

But on the other hand, I will agree that federal student loans do need to be reformed. The fact that they are un-bankruptable and can automatically garnish your wages without any kind of lawsuit first is terrible.

Ron Paul - Intellectual hero

I am impressed. Frederica

I am impressed. Frederica Wilson has submitted a bill that doesn't involve the ability to wear different kinds of hats within the halls of Congress...

Southern Agrarian

Classic symptoms of perverting a free market

In the free market the banks and traditional lenders where refusing to give loans to people who they didn't think would be able to pay them back.

Rather than forcing those people to save some money and come back with a better plan, the government stepped in to provide the loans.

Now the government has a bunch of un-paid loans from these same people and they want us (the tax payers) to bail them out and forgive this debt.

Complete ridiculousness!

The solution is to stop government backed student loans and go back to a free market student loan system.

I would go further than that.

I would do away with "bankruptcy" laws as they are written.

In the end we (the tax payer) always pay for the losses connected to bankruptcy but the fact that those who default can get a free pass is just as you said. Ridiculous.

It's best to not get student loans in the first place

especially for degrees that don't have much prospect for providing an income to pay it back.

Something definitely needs to be done about this situation.

A college degree is the biggest scam going at this time in most cases.

Thanks for posting

meekandmild's picture

yep, I agree


Agreed. But the real solution is to end student loans

Restoring bankruptcy protection is just a matter of equity. If banks can go bankrupt it's just a blatant example of how the system is rigged if the students they (used to) lend to cannot go bankrupt.

But in general secondary education is an extremely overpriced luxury.

Most degrees confer no employability benefit and it's because they are subsidized. It's made worse because so much of the subsidy is in the form of a loan and because the young dumb fcuks have been indoctrinated by the government socialized indoctrination system to think another 4 years of overpriced indoctrination is going to make their lives better.

You could fix the situation easily by gradually phasing out all subsidies over several years. Then the universities would have to offer a product that is worth it to kids and make the price worthwhile.

It is true most employers prefer a college degree for unskilled labor. But that is merely because if you're going to hire a new person you prefer the one who could at least manage the trivial hurdles of a gender studies degree over someone who didn't. But if we didn't have all these kids who wasted tens of thousands of dollars and 4 years of their life, that wouldn't be an issue.

The principle is the same with anything provided at socialized cost. Even if it's probably siht, any government cheese is still 'free' so you take it.

Similarly the liberal art degree on your new Hardee's employee is probably worthless, but it was 'free' from the employers short term perspective, so you take it.

Although employers are starting to learn that wasting 4 years of your life and getting $100k in debt for a completely worthless piece of paper might not be the best sign of intelligence in a new employee.

There are just a few professions that require four years of education.

Unfortunately the profligate subsidization of education has bid up the price for all degrees as if the degree conferred the same expected earnings as one of those few technical professions.

Economically and morally, the costs of even those educations should be born by the beneficiaries, the professional and the employer.

Sadly belief that somehow merely having a Bachelor's certificate of advanced socialist indoctrination is somehow beneficial to society as a whole is exactly what has gotten us to this situation.

well said


Thanks you sir

Sacred cows are the best eatin:)

The 'obvious' benefit to society of millions of highly indebted moderately intelligent arrogant kids whose heads are full of lies they will take decades of pain to unlearn (if lucky) is a sacred cow I do not like to miss the opportunity to have a go at.

But even if secondary ed conferred a benefit it would still be bad to subsidize it, most obviously because it is exactly the subsidization that has made it less than worthless.

It was not always worthless and overpriced. It used to be you could put yourself through school working part time and get a engineering degree or whatnot.

When people had to pay themselves, even a liberal arts degree told you something useful, that the kid had rich parents who didn't care if the kid could ever make it on his own or else had political ambition.